Yes, talks between my NPCs are also in that mod. Without the IWD Crossmod Banter Pack you won't get NPC-NPC talks, romance conflicts etc. It doesn't matter it's just my NPCs because even those need the introduction of the banter system provided by IWD CBP 
And they are still different mods. IWD CBP also gets rid of the problem of installation order. It's always installed as the last mod, so the mod detects which NPCs you have in your game and updates them.
And they are still different mods. IWD CBP also gets rid of the problem of installation order. It's always installed as the last mod, so the mod detects which NPCs you have in your game and updates them.